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The unexpected upheaval in the cryptocurrency industry has caused rates to crash throughout the board. A long-term bullish pattern in altcoins such as Monero has flipped to a bearish one. However, the shift in direction may be an indication of an imminent market correction.
At the time of publication, XMR was trading at $313.10, with a market cap of $5.58 billion.
Monero 6-hour chart
The XMR chart displayed a heavy bullish trend that was propelling its price higher on the price scale. The sector, however, had not seen a major correction to stabilise its price. With a 19% decline in six hours, the XMR price was momentarily moved below its immediate support at $312.39.
As the coin progressed through the economy, losing control of this help could lead to another downtrend.
There is a lot of uncertainty in the industry, and the price has been increasing within an ascending channel. However, the price fell, signalling a bearish shift in the current trend. The signal line also moved over the price bars, confirming the bears’ entrance into the market.
The chart also indicated that the 50-day moving average was currently serving as a boost for the stock.
The Relative Strength Index indicated that the digital commodity was gradually approaching the oversold zone. The commodity has been hovering in the overbought range for some time now, and as the price has dropped, so has the selling pressure. Meanwhile, the market’s optimism has been relatively strong.
The new XMR market has seen a significant correction, and selling demand has increased. This could add to the market decline and push it back up to $287.